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Energy Efficiency Tax Credits (Corporate)

Eligibility 
Agricultural
Commercial
Construction
Industrial
Installer/Contractor
Savings Category 
Heat Pumps
Lighting
Maximum Rebate 

Energy Efficient Lighting System: $500
Energy Efficient HVAC System: $500
Energy Star Manufactured Home sold by the taxpayer: $400
Energy Star Home: $800

Program Info
Start Date 

1/1/2009

Expiration Date 

12/31/2015

State 
Kentucky
Program Type 
Corporate Tax Credit
Rebate Amount 

30% of installed cost

Provider 
Kentucky Department of Revenue

In April 2008, Kentucky enacted legislation establishing a 30% state income tax credit for taxpayers that install certain energy efficiency measures on commercial property. The 30% credit (up to $500) is allowable against individual, corporate income or limited liability income taxes for any of the following equipment:

  • Energy-Efficient Heating Ventilating and Air Conditioning (HVAC) or Hot Water System
  • Interior Lighting Systems

The total tax credit may not exceed $1,000 for any combination of HVAC, hot water, and lighting systems. It should be noted that there is a separate tax credit (up to $400) available for taxpayers who sell an Energy Star manufactured home, and $800 for an Energy Star home; however if a taxpayer takes that tax credit he/she is not eligible for the other efficiency tax credits described in this summary.

The legislation defines an energy efficient lighting system as an interior lighting system that meets the maximum reduction in lighting power density requirements for the federal energy efficient commercial building deduction under 26 U.S.C. sec. 179D, as in effect December 31, 2007; and it defines an energy-efficient heating, cooling, ventilation, or hot water system as a system that meets the requirements for the federal energy-efficient commercial building deduction under 26 U.S.C. sec. 179D, as in effect December 31, 2007.

See [http://revenue.ky.gov/nr/rdonlyres/e2dafc0b-4f18-4d76-91f8-c6766a3843ee/... guidance] issued by the Kentucky Department of Revenue (DOR) for additional information.

Kentucky also allows 30% [http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=KY29F&re... personal tax credit] for energy efficiency improvements made to the taxpayer's principal residence.

To claim the tax credit, use [http://revenue.ky.gov/NR/rdonlyres/5BE0A4F2-6847-4B9E-85F0-80D5D1F29BB4/... Form 5695-K - Kentucky Energy Efficiency Products Tax Credit - Form 41A720-S7] available on the Kentucky Department of Revenue website. Also available on the Kentucky DOR website is the 8908-K Kentucky Energy Star (Homes and Manufactured Homes) Tax Credit, [http://revenue.ky.gov/NR/rdonlyres/2F15413B-A6FF-47AA-B4EF-9464E9C926E8/... for the Energy Star Home tax credit.]

These credits may be applied during taxable years 2009-2015.